• Multiple zones in Hickory-1 scheduled to be tested, all expected to flow based on reservoir characteristics
• Permitting and planning commenced, with the flow testing program scheduled to begin as early as possible during the 2023/2024 Alaskan winter operational season
• Rig selection expected to be concluded imminently for Hickory-1 flow tests
• Post-well analysis of cores, mud gas isotubes and wireline data is ongoing; initial results encouraging with good correlation to migration and thermal maturity models for Project Phoenix

88 Energy today provides an update in relation to the Hickory-1 flow testing program at Project Phoenix on the North Slope, Alaska.

Hickory-1 Flow Testing Program

The Hickory-1 well is currently cased and suspended ahead of the upcoming flow testing program, which is scheduled to commence as early as possible in the 2023/2024 winter operational season. The flow test and well stimulation program is being developed in consultation with flow test design experts, who are utilising available regional information in combination with a detailed evaluation of the drilling and wireline logging data from Hickory-1.

One aspect of the flow testing design that is of particular importance is the choice of fluids used to stimulate the reservoir. The chemical composition of these fluids can interact with certain clay types in the reservoirs, thus having significant implications for each reservoir’s performance and the stimulation operation. The Company is working with technical consultants to determine the optimal fluids to be used to stimulate the reservoir in conjunction with the overall flow test program design to ensure the best possible outcomes. Program planning is on schedule and will include rigorous technical and economic optimisation prior to finalisation. Rig selection and contract negotiation is expected to be concluded imminently and key long lead items required are being ordered.

Hickory-1 Drilling and Wireline Program

Hickory-1 intersected multiple hydrocarbon-bearing zones across all primary and secondary predrill targets and identified the new Upper Slope Fan System reservoir. The 2023 Hickory-1 drilling and wireline program delivered the following key outcomes:

• Confirmed presence of multiple hydrocarbon-bearing pay zones across all pre-drill targets, in addition to the newly identified Upper SFS reservoir; 
• Approximately 450 feet of estimated net pay calculated from wireline data over all pay zones, with gross pay estimated to be over 2,000 feet; 
• Average total porosity of 9-12% across all zones, with key target zones in the Upper and Lower SFS exhibiting between 11-16% total porosity; and 
• Reservoir quality and thickness met or exceeded pre-drill expectations, with higher-than expected porosity in the SFS and BFF, as well as increased total gross reservoir, total net reservoir, and total net pay.    

Preliminary petrophysical comparison of prospective zones in Hickory-1 against the interval that flowed oil in Pantheon’s Alkaid-1, suggests favourable potential for successful flow of hydrocarbons from multiple zones in the Hickory-1 well.

Pantheon’s wells on the adjacent northern acreage (Alkaid-1, Alkaid-2, Talitha-A and Theta West1) have all flowed 35 to 40⁰ API oil from similar sandstones, with testing confirming reservoir deliverability of light, sweet oil.

Hickory-1 Post Well Analysis

Post well analysis is ongoing with results from the testing programs anticipated to be fully completed and received in early Q3 2023. The summary below provides an overview of the planned program of post well analysis of results and pre-planning for flow testing:

Geological Analysis 

• Including refining the depositional model and thin sections analysis 

Geophysical Analysis 

• Refining current interpretations, update AVO analysis +/- seismic inversion to integrate Hickory-1 shear data 

Routine and Special Core Analysis 

• Including porosity and permeability testing to calibrate petrophysical models 

Geochemical Analysis 

• Including High Resolution Gas Chromatography and mud gas carbon isotope analysis 

Geomechanical Analysis 

• Azimuthal rock property analysis including strength testing for stimulation modelling 

Flow Testing Planning 

• Stimulation modelling and design 
• Tender for services and award

Mudgas isotubes results were analysed from samples collected at 100-foot intervals and at all significant mud gas peaks throughout the well. Thermal maturity data from the isotubes show all Phoenix reservoirs cluster around 1.0 % Ro, coincident with a light oil generative source rock. The Vitrinite reflectance results are further supported by reservoir pyrolysis tests conducted on side wall core plugs from a separate lab facility. Figure 4 below shows that all valid reservoir tests plot in the interpreted “oil window” with a general trend of increasing maturity with depth. Finally, the interpretive “wetness” plot of the mud gas isotube data also supports oil-only phase interpretation across all Hickory-1 reservoirs with an average of 15% (as a rule of thumb, Oil >10% and condensate.

KeyFacts Energy: 88 Energy US Alaska country profile